Indiva Ltd V.NDVA.H

RE:RE:RE:RE:RE:RE:RE:RE:Warrant Incentive Program PR

[nedstar71]

caretired1 wrote: I think if you look at the Dycar deal done in early 2020, the yield was north of 25% and due early 2022.  So to pay it out early and replace at 15% yield, it's a positive, maybe not as good as you hoped. In addition we no longer have 10% margin revenue to them so our reported margins should rep wana and Bhang better. While more debt is not all positive, it's not dilutive.
by the way, the current investor presentation now shows sundial at 15.9% - the sooner they are 10% or less, the better. Maybe ATB could earn a fee to move those shares 

That's good to know. I couldn't find anything about the interest rate but the Dycar deal looked like the type it will be good to be free of. I just don't fully understand the reasoning behind amending the entire loan to 15%. Obviously they had no choice and Sundial isn't doing them any favours, but surely they could have figured out an alternative to come up with $8,380,859. It's not just that amount at 15 percent, the other 11 mil already locked in at 9 increased to 15 percent also. My napkin math puts the cost of that extra 8 mil at more like 23 or 24 percent interest when the previous loan's rate increase is factored in if you follow my logic. I think I'd prefer dilution to that. It's not like the stock is getting rewarded for it's low share count or market cap anyway. Probably not an option given the current lack of appetite for cannabis stocks though.